Corporate news

EBIT of first quarter at previous year's level

Corporate News

· Revenue drops by 5%
· Annual report 2006/2007 published
· Marketing costs for new services to be adjusted


Berlin, 25 January 2008 – This Friday, MAGIX AG (ISIN DE0007220782) published its preliminary and unaudited figures for the first quarter as well as the annual report of the financial year 2006/2007 (as of 30 September).
Between October and December the company achieved revenues of EUR 9.3 million, which corresponds to a drop of 5% compared to the previous year. This is a result of the continuing difficulties on the US market where CompUSA, the second most important partner of MAGIX AG, has ceased all its trading operations. Also, delays in the relocation to a new data centre resulted in losses in Internet business. Despite this, however, the portal business was still able to grow by 10% in the past quarter. The number of registered users rose to 7.44 million. At 85.0% the gross margin was about 1% below the previous year's level.

The operating costs of the first quarter remained 13% below last year's figure at EUR 5.2 million due to an adjustment of the marketing expenditures. Despite the loss in revenue, however, the level of the EBIT of the comparison period of the financial year 2006/2007 was still reached at EUR 1.9 million.
The cash flow continued to be positive and the equity ratio remained at approx. 80%.

Although the development of revenues in the first quarter was below expectations the Executive Board of MAGIX AG continues to hold on to its EBIT forecast of EUR 2 million for the total year. If necessary, the marketing expenditures planned for the new Internet services will be adjusted.

Furthermore, the group published the annual report of the financial year 2006/2007 today. According to the report the MAGIX Group generated revenues of EUR 32.6 million during the reporting period, which corresponds to a drop of 8.7% compared to the previous year. The EBIT was at EUR 3.1 million, compared to EUR 8.2 million in the financial year 2005/2006. The annual report can be ordered in printed form from the Investor Relations department of MAGIX AG or viewed on the company website at www.magix.com/report .

The first quarter report for the financial year 2007/2008 will be published on 28 February 2008.